Paul Krugman revelation on the recent jump in stock prices

Ever since the corana virus invaded the humans the real economy has got the beating . Individual  national economies have lost their fat and weight and GDP figures are driven down.The jobless have gone up in almost all countries.while the real economy is crashing, the stock market which does not always reflect the real state of the Economy, mostly driven by greed and avarice, more like a gambler's den is now on song.

Paul Krugman recently has given more insight as to why the stock prices are on the rise when the real economy is weak.

Although on the heels of Covid the stock market fell it has bounced back now to pre corona level.This disconnect wil be surprising.Krugman tells the deeper reasons.

Despite the economy as a whole is weak, there are stocks which are strong.So investors having no other greener pasture grab those stocks.Result. Stock market is on song

Kugman says that the interst rate on 10year old government bonds is only0.6 percent down from 3% in late 2018.Adjuted for inflation return from bond is nagative.

I have triggered your curiosity to read more international financ

For long I have not written in blog.I will resume my blog writing